Cash App Afterpay Reveals That Credit Card "Ick" is Real with Nearly Two-Thirds of Gen Z Ditching Credit Cards for Smarter Spending
Cash App Afterpay has released a new report revealing significant shifts in payment preferences among younger consumers. The study shows that 63% of Gen Z are moving away from credit cards, with 51% saying credit cards give them the 'ick'.
Key findings indicate that 82% of Americans believe credit cards can be financially dangerous, and 68% of Gen Z report stress and anxiety from credit card bills. The research highlights that 40% of credit card users are frequently surprised by interest fees, rising to 53% for Gen Z.
The report demonstrates a clear trend toward alternative payment methods, with 70% of Americans preferring debit cards. Notably, 52% of Gen Z believe Buy Now, Pay Later (BNPL) services could help them better manage finances compared to traditional credit. The study also reveals that 48% of Americans are open to using BNPL in the future, including 55% of Gen Z.
Cash App Afterpay ha pubblicato un nuovo rapporto che rivela significativi cambiamenti nelle preferenze di pagamento tra i consumatori più giovani. Lo studio mostra che il 63% della Gen Z si sta allontanando dalle carte di credito, con il 51% che afferma di provare 'disgusto' per le carte di credito.
I risultati chiave indicano che l'82% degli americani crede che le carte di credito possano essere finanziariamente pericolose, e il 68% della Gen Z riporta stress e ansia a causa delle bollette delle carte di credito. La ricerca evidenzia che il 40% degli utenti di carte di credito è frequentemente sorpreso dalle spese per interessi, che salgono a il 53% per la Gen Z.
Il rapporto dimostra una chiara tendenza verso metodi di pagamento alternativi, con il 70% degli americani che preferisce le carte di debito. Notabilmente, il 52% della Gen Z crede che i servizi di Acquisto Ora, Paga Dopo (BNPL) potrebbero aiutarli a gestire meglio le finanze rispetto alle carte di credito tradizionali. Lo studio rivela anche che il 48% degli americani è aperto all'utilizzo di BNPL in futuro, inclusi il 55% della Gen Z.
Cash App Afterpay ha lanzado un nuevo informe que revela cambios significativos en las preferencias de pago entre los consumidores más jóvenes. El estudio muestra que el 63% de la Generación Z se está alejando de las tarjetas de crédito, con el 51% afirmando que les dan 'asco' las tarjetas de crédito.
Los hallazgos clave indican que el 82% de los estadounidenses creen que las tarjetas de crédito pueden ser financieramente peligrosas, y el 68% de la Generación Z informa estrés y ansiedad por las facturas de tarjetas de crédito. La investigación destaca que el 40% de los usuarios de tarjetas de crédito se sorprenden con frecuencia por las tarifas de interés, aumentando a el 53% para la Generación Z.
El informe demuestra una clara tendencia hacia métodos de pago alternativos, con el 70% de los estadounidenses prefiriendo las tarjetas de débito. Notablemente, el 52% de la Generación Z cree que los servicios de Comprar Ahora, Pagar Después (BNPL) podrían ayudarles a gestionar mejor sus finanzas en comparación con el crédito tradicional. El estudio también revela que el 48% de los estadounidenses está abierto a usar BNPL en el futuro, incluyendo el 55% de la Generación Z.
Cash App Afterpay는 젊은 소비자들 사이의 결제 선호도에서 중요한 변화가 있음을 보여주는 새로운 보고서를 발표했습니다. 이 연구에 따르면 63%의 Z세대가 신용카드를 멀리하고 있으며, 51%는 신용카드에 대해 '거부감'을 느낀다고 말합니다.
주요 발견 사항에 따르면 82%의 미국인이 신용카드가 재정적으로 위험할 수 있다고 믿고 있으며, 68%의 Z세대는 신용카드 청구서로 인해 스트레스와 불안을 겪고 있습니다. 연구는 40%의 신용카드 사용자가 이자 수수료에 자주 놀란다고 보고하며, 이는 Z세대에 대해 53%로 증가합니다.
보고서는 대체 결제 수단으로의 명확한 경향을 보여주며, 70%의 미국인이 직불카드를 선호합니다. 특히 52%의 Z세대는 전통적인 신용카드보다 '지금 구매하고 나중에 결제하기'(BNPL) 서비스가 재정을 더 잘 관리하는 데 도움이 될 수 있다고 생각합니다. 연구는 또한 48%의 미국인이 미래에 BNPL을 사용하는 것에 열려 있으며, 그 중 55%가 Z세대입니다.
Cash App Afterpay a publié un nouveau rapport révélant des changements significatifs dans les préférences de paiement parmi les jeunes consommateurs. L'étude montre que 63% de la génération Z s'éloigne des cartes de crédit, avec 51% affirmant que les cartes de crédit leur donnent 'la nausée'.
Les résultats clés indiquent que 82% des Américains pensent que les cartes de crédit peuvent être financièrement dangereuses, et 68% de la génération Z rapportent du stress et de l'anxiété à cause des factures de cartes de crédit. La recherche met en évidence que 40% des utilisateurs de cartes de crédit sont souvent surpris par les frais d'intérêt, montant à 53% pour la génération Z.
Le rapport démontre une tendance claire vers des méthodes de paiement alternatives, avec 70% des Américains préférant les cartes de débit. Notamment, 52% de la génération Z croient que les services d'Achetez maintenant, payez plus tard (BNPL) pourraient les aider à mieux gérer leurs finances par rapport aux crédits traditionnels. L'étude révèle également que 48% des Américains sont ouverts à l'utilisation de BNPL à l'avenir, y compris 55% de la génération Z.
Cash App Afterpay hat einen neuen Bericht veröffentlicht, der bedeutende Veränderungen in den Zahlungspräferenzen junger Verbraucher aufzeigt. Die Studie zeigt, dass 63% der Generation Z sich von Kreditkarten abwendet, wobei 51% angibt, dass Kreditkarten ihnen ein 'Unbehagen' bereiten.
Wichtige Ergebnisse zeigen, dass 82% der Amerikaner glauben, dass Kreditkarten finanziell gefährlich sein können, und 68% der Generation Z berichten von Stress und Angst aufgrund von Kreditkartenrechnungen. Die Forschung hebt hervor, dass 40% der Kreditkartenbenutzer häufig von Zinsen überrascht werden, was bei der Generation Z auf 53% ansteigt.
Der Bericht zeigt einen klaren Trend zu alternativen Zahlungsmethoden, wobei 70% der Amerikaner Debitkarten bevorzugen. Bemerkenswert ist, dass 52% der Generation Z glauben, dass 'Jetzt kaufen, später bezahlen' (BNPL) ihnen helfen könnte, ihre Finanzen besser zu verwalten als traditionelle Kredite. Die Studie zeigt auch, dass 48% der Amerikaner offen dafür sind, BNPL in Zukunft zu nutzen, einschließlich 55% der Generation Z.
- Strong adoption potential for BNPL services with 48% of Americans open to using them
- High market penetration opportunity among Gen Z with 55% interested in BNPL
- Clear competitive advantage over traditional credit cards in the Gen Z segment
- 72% of Gen Z report lower confidence in managing personal finances compared to other generations
- Potential regulatory scrutiny due to targeting younger, financially less experienced consumers
Insights
Cash App Afterpay's report on payment preferences reveals a significant behavioral shift that could reshape the payments landscape. The data showing
This research validates the strategic rationale behind Block's
The report highlights a crucial pain point: financial transparency. With
However, this research warrants scrutiny as it was commissioned by Cash App Afterpay itself, potentially introducing selection bias. While the findings align with broader industry observations about shifting payment preferences, they should be viewed as part of a promotional campaign rather than independent market research.
For payment networks (Visa, Mastercard) and issuing banks, this represents a competitive challenge requiring strategic adaptation. For Block and other BNPL providers, it validates their value proposition but doesn't address the sector's profitability challenges or increasing regulatory scrutiny.
This report captures a fundamental values shift in financial services that extends beyond mere payment preferences. Gen Z's credit card "ick" reflects a deeper rejection of financial products perceived as exploitative or lacking transparency.
The
This confidence discrepancy creates a market opening for financial products that provide both education and guardrails. BNPL's structured repayment model with predetermined amounts addresses the psychological need for boundaries that many young consumers desire after witnessing previous generations struggle with revolving debt.
The broader implications extend to financial product design across categories. Successful products for this generation will need to incorporate:
- Upfront transparency about all costs
- Built-in mechanisms that prevent financial overextension
- Digital-first experiences with immediate feedback
- Features that build financial confidence
For incumbent financial institutions, the challenge isn't simply offering BNPL alternatives but fundamentally rethinking their approach to product transparency, fee structures, and customer education—areas where fintech competitors have gained significant advantages with younger demographics.
Report reveals
More than half of Gen Z believe BNPL helps them better manage their finances compared to traditional credit, highlighting a clear generational shift
DISTRIBUTED-WORK-MODEL/
The Growing ‘Ick’ Factor of Credit Cards for Younger Consumers
Consumer sentiment around credit cards is shifting for all Americans, with
Research found that
Americans, Especially Gen Z, Are Choosing Debit and BNPL Over Credit Cards
As frustration with credit cards grows, consumers are actively seeking alternative payment methods that offer greater transparency and control. Debit cards remain the most widely used, with
Notably, more than half of Gen Z (
The Future of Payments: Choice, Control, and Clarity
These findings reinforce the broader shift that consumers, especially Gen Z, are making toward financial tools that prioritize transparency, flexibility, and responsible spending—values that are shaping the future of payments.
Consumers are reevaluating their relationship with traditional credit, and are no longer willing to accept opaque fees or compounding interest, nor the stress that accompanies it. Instead, they are gravitating toward payment solutions that value transparency and flexibility, and most importantly one that supports their financial health.
Cash App Afterpay is at the forefront of this shift, offering a transparent and responsible way to shop and budget without the stress of revolving debt. With features like real-time underwriting, clear payment schedules, and no compounding interest, Cash App Afterpay’s pay over time features are helping consumers spend smarter and plan better, empowering them to take charge of their financial future.
To access the full report, click here.
About Afterpay
Cash App Afterpay is transforming the way we pay by allowing eligible shoppers to buy products immediately and pay over time - enabling simple, transparent and responsible spending. We are on a mission to power an economy in which everyone wins. Afterpay is offered by thousands of the world’s favorite retailers and used by millions of active global customers. Afterpay is currently available in
1 Drawn from insights from a survey of more than 5,400 adults in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20250401672101/en/
Press Contact
press@cash.app
Source: Block, Inc.
FAQ
What percentage of Gen Z are abandoning credit cards according to Cash App Afterpay's report?
How many Americans believe credit cards can be financially dangerous?
What percentage of Gen Z experience stress from credit card bills?
How many Americans are considering using BNPL services in the future?
What percentage of Gen Z believe BNPL helps with financial management?
